Tesla, Inc, (NASDAQ:TSLA) shares were modestly higher in premarket trading as two diverging catalysts served to offset the impact of each other.
In premarket trading, the stock moved up 0.23% to $258.67, according to Benzinga Pro data.
Tesla Asia shared the news about the launch of the Model 3 refresh in a post on Elon Musk-owned social media platform X, formerly Twitter. The revamped vehicle, made in Giga Shanghai, is now available for purchase in China’s Mainland, Japan, Malaysia, Australia, New Zealand, Europe, and the Middle East.
Additionally, Tesla updated the pricing of its configurator Model S and X in the U.S., taking down prices by between 15.3% to 18.8%.
Price cuts, especially on configurator models, are viewed negatively by the market, given the impact they can have on margins. The company also reduced the prices of its full self-driving software from $15,000 to $12,000.
Commenting on the twin catalysts, Tesla investor Gary Black said, “Net margin impact associated with M-S/X and FSD price cuts likely to be negligible when offset with M-3 price hike.”
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